Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2015

Investments, All Other Investments [Abstract]

Carrying Amount and Estimated Fair Values of Financial Instruments

The amounts recorded in the balance sheet (carrying amount) and the estimated fair values of financial instruments at September 30, 2015 and December 31, 2014 consisted of the following:



	September 30, 2015				December 31, 2014
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
(DOLLARS IN THOUSANDS)
Cash and cash equivalents ⁽¹⁾	$	272,276	$	272,276	$	478,573	$	478,573
Credit facilities and bank overdrafts ⁽²⁾	262,521		262,521		12,335		12,335
Long-term debt: ⁽³⁾
Senior notes - 2007	500,000		576,155		500,000		587,650
Senior notes - 2006	125,000		129,110		125,000		133,137
Senior notes - 2013	299,802		299,577		299,782		296,290


(1)	The carrying amount of cash and cash equivalents approximates fair value due to the short maturity of those instruments.


(2)	The carrying amount of our credit facilities and bank overdrafts approximates fair value as the interest rate is reset frequently based on current market rates as well as the short maturity of those instruments.


(3)	The fair value of our long-term debt was calculated using discounted cash flows applying current interest rates and current credit spreads based on our own credit risk.

Derivative Instruments Notional Amount Outstanding

The following table shows the notional amount of the Company’s derivative instruments outstanding as of September 30, 2015 and December 31, 2014:



(DOLLARS IN THOUSANDS)	September 30, 2015		December 31, 2014
Foreign currency contracts	$	283,550	$	191,150
Interest rate swaps	$	775,000	$	425,000

Derivative Instruments Measured at Fair Value

The following tables show the Company’s derivative instruments measured at fair value (Level 2 of the fair value hierarchy), as reflected in the Consolidated Balance Sheets as of September 30, 2015 and December 31, 2014:



	September 30, 2015
(DOLLARS IN THOUSANDS)	Fair Value of Derivatives Designated as Hedging Instruments		Fair Value of Derivatives Not Designated as Hedging Instruments		Total Fair Value
Derivative assets ^(a)
Foreign currency contracts	$	6,690	$	2,149	$	8,839
Interest rate swaps	4,409		—		4,409
	$	11,099	$	2,149	$	13,248
Derivative liabilities ^(b)
Foreign currency contracts	$	3,725	$	2,263	$	5,988
Interest rate swaps	4,772		—		4,772
	$	8,497	$	2,263	$	10,760



	December 31, 2014
(DOLLARS IN THOUSANDS)	Fair Value of Derivatives Designated as Hedging Instruments		Fair Value of Derivatives Not Designated as Hedging Instruments		Total Fair Value
Derivative assets ^(a)
Foreign currency contracts	$	16,637	$	4,398	$	21,035
Interest rate swaps	683		—		683
	$	17,320	$	4,398	$	21,718
Derivative liabilities ^(b)
Foreign currency contracts	$	6	$	1,055	$	1,061


(a)	Derivative assets are recorded to Prepaid expenses and other current assets in the Consolidated Balance Sheet.


(b)	Derivative liabilities are recorded as Other current liabilities in the Consolidated Balance Sheet.

Derivative Instruments Which Were Not Designated as Hedging Instruments

The following table shows the effect of the Company’s derivative instruments which were not designated as hedging instruments in the Consolidated Statement of Comprehensive Income for the three and nine months ended September 30, 2015 and 2014 (in thousands):



Derivatives Not Designated as Hedging Instruments	Amount of Gain (Loss) Recognized in Income on Derivative					Location of Gain (Loss) Recognized in Income on Derivative
	Three Months Ended September 30,
	2015			2014
Foreign currency contracts	$	(1,979	)	$	17,517	Other expense (income), net
Derivatives Not Designated as Hedging Instruments	Amount of Gain (Loss) Recognized in Income on Derivative					Location of Gain (Loss) Recognized in Income on Derivative
	Nine Months Ended September 30,
	2015			2014
Foreign currency contracts	$	8,097		$	18,942	Other expense (income), net

Derivative Instruments Designated as Cash Flow and Net Investment Hedging Instruments

The following table shows the effect of the Company’s derivative instruments designated as cash flow and net investment hedging instruments in the Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2015 and 2014 (in thousands):



	Amount of (Loss) Gain Recognized in OCI on Derivative (Effective Portion)					Location of (Loss) Gain Reclassified from AOCI into Income (Effective Portion)	Amount of (Loss) Gain Reclassified from Accumulated OCI into Income (Effective Portion)
	Three Months Ended September 30,						Three Months Ended September 30,
	2015			2014			2015			2014
Derivatives in Cash Flow Hedging Relationships:
Foreign currency contracts	(7,794		)	5,680		Cost of goods sold	6,956			(1,221		)
Interest rate swaps ⁽¹⁾	(4,703		)	69		Interest expense	(69		)	(69		)
Derivatives in Net Investment Hedging Relationships:
Foreign currency contracts	(547		)	5,097		N/A	—			—
Total	$	(13,044	)	$	10,846		$	6,887		$	(1,290	)

	Amount of (Loss) Gain Recognized in OCI on Derivative (Effective Portion)					Location of (Loss) Gain Reclassified from AOCI into Income (Effective Portion)	Amount of (Loss) Gain Reclassified from Accumulated OCI into Income (Effective Portion)
	Nine Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Derivatives in Cash Flow Hedging Relationships:
Foreign currency contracts	(1,815		)	7,601		Cost of goods sold	11,540			(2,699		)
Interest rate swaps ⁽¹⁾	(4,565		)	207		Interest expense	(207		)	$	(207	)
Derivatives in Net Investment Hedging Relationships:
Foreign currency contracts	2,984			5,395		N/A	—			—
Total	$	(3,396	)	$	13,203		$	11,333		$	(2,906	)

(1) Interest rate swaps were entered into as pre-issuance hedges.